United Republic of Tanzania

Transcription

1 United Republic of Tanzania INVESTMENT OPPORTUNITIES IN TANZANIA Transportation SADC JAPAN INFRASTRUCTURE, SEMINAR 2012, JAPAN - March 2012 Presentation by: Mr. Raymond Mbilinyi, Ag. Executive Director, Tanzania Investment Centre

2 T A N Z A N I A S E C O N O M Y Tanzania contains a total area of 945,087 sq km The economy depends on agriculture, which accounts for more than 40% of GDP, provides 85% of exports, and employs 80% of the work force. Population: 41.8 Million (2010 est.) Labour Force: Million (2009 est.) 2 Labour Force: million (2009 est.) GDP $ 22.4 Billion (2009 Est.) GDP Per Capita $ 660 (2010 Est.) Real GDP Growth Rate 7% (2010 Est.) Inflation 6.4% (Jan 2011) Source: NBS/BOT Annual Budget (2010/11) : TShs 4.7 Trillion Av. Monthly tax collection (2010/11): TShs 390 Billion Bank Reserves (2010/11) : Tshs 3,551.3Billion

3 3 Why Tanzania?

4 A f r i c a 6 of the world s 10 fastest-growing economies in the past 10 years were from sub-saharan Africa and 7 of the world s top 10 in the next 5 years will also be from Africa 4 - Average GDP growth for Sub-Sahara Africa is expected to be 5.3 % this year

5 Why Tanzania? 1. Peace & Political Stability Elected National assembly, Elected President and presidential term two terms only 2. Strategic Location of Tanzania Tanzania s strategic geographical location and easy connectivity business locations worldwide is a motivating factor to investors. Has 3 major ports (Tanga, DSM and Mtwara providing service to neighboring landlocked countries) 3. Competitive Investment Legal Framework 5 More than 2 decades ago, the Government made a U-turn from a centralized to a market free economy whereby most laws and policies had to be reformed. Tax laws, companies, Immigration laws, etc

6 Why Tanzania? 4. Attractive Investment Fiscal Regime Tanzania has Stable and Predictable Fiscal Investment Regime - providing a Soft Landing to all investors. It recognizes that investors need to recover their Investment Costs first before paying corporation tax. 5. Predictable Investment Incentives All prospective investors are most welcome to take advantage of the generous incentives under the liberalized environment offered by the new investment regime Tanzania Investment Act, 1997 (Act No. 26 of 1997) 6. Free Repatriation of Funds 6 Transfer of funds is allowed through any authorized bank in freely convertible currency of net profits, repayment of foreign loans, royalties, fees charges in respect of foreign technology, remittance 6 of proceeds and payment of emoluments, etc

7 It has in place one of the best Investment Promotion Agencies in the World. ONE STOP FACILITATIVE CENTRE It was awarded the first prize by UNCTAD/WAIPA for facilitating and Providing the aftercare service to all Investors OTHER TASKS o Investment Promotion o Investment Facilitation o After Care Services to Investors o Linkage With Other African Economic Blocks e.g: SADC 7

8 Market Access Tanzania enjoys Preferential Market Access with; Negotiated EPAs-EBA, Everything But Arms Japan, Canada etc AGOA (USA) Africa Growth and Opportunity Act Over 6,000 items China Over 4,000 Items EAST AFRICA About 130M People SADC 300m People 8

9 In Order to create Investment Confidence Tanzania has entered into Double Taxation Agreement with several countries. America Canada Europe Finland Sweden Norway Italy Germany Denmark Netherlands Switzerland Uniited Kingdom Belgium Middle East DTA Treaty Network Kuwait Oman United Arab Emirates Qatar Iran Lebanon Asia China India Korea Africa South Africa EAC Treaty Zambia Botswana Mozambique Algeria Egypt 9 Countries whose negotiations are at final stages

10 TREND OF PROJECTS REGISTERED WITH TIC FROM 2005 TO 2011 Number of Projects Source: TIC data The Centre registered a total of 825 projects in This is the highest peak reached in term of projects since The value of projects registered in 2011 increased by 35 per cent compared to The decline from is due to Financial Crisis. But as predicted. The U-Scenario shows the pick of investments from on wards 10

11 Structure of ownership of projects registered by TIC in 2011 Foreign Investors Domestic Investors Joint Investors Foreign =172, Joint Venture = 191 and Local = 462 Source: TIC Database 11

12 Ten leading countries that have invested in Tanzania (by Value Million US$ ) S. Africa 7% Canada 5% Germany 3% Oman 2% UK 23% Netherlands 10% China 10% India 15% USA 10% Kenya 15% Source: TIC Database 12

13 FDI inflows to Tanzania from Source: UNCTAD - World Investment Report

14 TANZANIA TRADE WITH JAPAN GROWING USD million p Exports Imports (c.i.f) Trade Balance (116.30) (132.1) (193.1) (200.9) (205.7) (250.2) Source: Bank of Tanzania 14

15 Investment Opportunities in Tanzania 15

16 TANZANIA DEVELOPMENT VISION 2025 Aims at taking Tanzania in an unprecedented economic transformation and development to achieve middle income status (with a Per Capital income of USD 3,000 by 2025) characterized by high levels of Industrialization, Competitiveness, Quality livelihood 16

17 5 YEAR DEVELOPMENT PLAN The plan is built on the following underlying prerequisites : 1.To sustain Macro - economic stability and Growth (GDP Growth, Employment, Trade and Investments Growth, etc) 2.Ensuring availability and accessibility of land for productive and settlement purposes 3.Enhancing good governance underpinned by Rule of Law. The Government aims at enhancing the investment environment, remove all barriers to trade and investment, remove red tape and assist investors to get better services in their establishment registration and licensing processes. 17

18 Private Public Partnership Act, No. 19, 2010 Tanzania has recently enacted a Public Private Partnership (PPP) Legislation The objectives of PPP Act is to promote private sector participation in the provision of public services through publicprivate partnership projects in terms of investment capital, managerial skills and technology. All PPP projects will be promoted and coordinated by TIC and the Ministry of Finance will host the finance unit Such projects will include major projects of infrastructure, agriculture, energy, service sector, transportation etc 18

19 Core Investments (as per Tanzania 5 year Development Plan) AGRICULTURE: Development of SAGCOT projects 2. ENERGY: 2,780 MW Electricity Generation 3. PORT: Expansion of Capacity of Dar es salaam Port 4. RAILWAYS: Rehabilitation of Tanzania Railway lines 5. AIRPORTS: Expansion of air cargo to 35,500 tonnes 6. I C T: Complete the National ICT backbone infrastructure 7. HUMAN CAPITAL DEVELOPMENT 8. etc

20 AGRICULTURE & AGRI-BUSINESS Tanzania has 44 million hectares of unexploited land suitable for Agriculture. There is huge arable land suitable for large scale farming of both food and cash crops as shown here below: Horticulture Floriculture Fish And aquaculture Sugar Palm Oil and Jatropha Pyrethrum and Artemisia Organic Cotton Coffee Tea 20 Wheat

21 The Southern Agricultural Growth Corridor of Tanzania The Southern Agricultural Growth Corridor of Tanzania(SAGCOT) is a public-private partnership which aims to boost agricultural productivity in Tanzania and the wider region. SAGCOT will promote clusters of profitable agricultural farming and services businesses, with major benefits for smallholder farmers and local communities Projects SAGCOT will identify existing and potential project opportunities in the corridor in the infrastructure and agriculture sectors. Six cluster developments have been identified along the southern corridor of Tanzania. 21

22 The Southern Agricultural Growth Corridor of Tanzania Investment opportunities lie in the sectors of Agriculture development, infrastructure development (Roads, Ports, Railways) and Power development. 22

23 NARCO is a parastatal organization with the responsibility of producing beef cattle for Domestic and Export markets. National Ranching Company (NARCO) has eight (8) existing core ranches comprising of an area of 230,384 hectares with nearly 45,000 heads of cattle, 3,025 sheep and 2,000 goats. National Ranching Company ranches have the total capacity of 92,500 animals. NARCO cattle are raised on natural pastures and mineral water. The company has a total of 124 non core ranches with total area of 289,069 hectares which are sub-leased to private livestock keepers. Investment opportunities are in Kongwa Ranch (Dodoma), Misenyi Ranch (Kagera), Mabare (Kagera), Kagoma (Kagera) and Kalumbo (Rukwa) 23

24 Extractive Industries

25 GEOLOGICAL ENVIRONMENT-TANZANIA

26 BASE METALS OCCURENCES -TANZANIA

27 COAL FIELDS OCCURENCES -TANZANIA

28 Opportunities in Mining You are invited to develop open cast and underground mines to extract Precious / Base Metals, Industrial Minerals and Hydro Carbon Minerals etc Minerals (e.g. Gold) Base Metals (e.g. Cobalt, Uranium) Gemstones (e.g. Tanzanite) Hydrocarbons: Oil And Natural Gas Coal: Refining, Processing, Smelting, Cutting and Polishing

29 Extractive Industries Mining An example of an Open Cast Mine at North Mara 29

30 Extractive Industries - Mining Location of Major Coal and Iron Ore Reserves TANZANIA Kiwira Coal Deposits Liganga Iron Ore, Titanium and Vanadium Deposits Mtwara Corridor Mchuchuma- Katawake Coal Deposits Sources: Tanzania Investment Centre, Tanzania National Development Corporation.

31 E N E R G Y The Government plan is to increase generation of electricity to 2,780 MW by This can be achieved by enhancing the following projects: - Upgrading and construction of new distribution lines - Improving power transmission to rural areas - Enhancing Natural gas development projects 31 - Fast-tracking bio-fuel development projects

32 Power Generation and Distribution An enabling legislation and Institutional framework is now in place to allow the private sector to engage in the Electricity Generation, Transmission and Distribution sector. 32

33 WIND ENERGY Wind energy resources provide a renewable energy, which is friendly to the environment. There exist adequate wind energy resources in Tanzania. The analysed wind speed data revealed that the wind energy potential in Tanzania is fairly high 33

34 Available Areas For Investment in the Petroleum Sector RWANDA BURUNDI L ake Tanganyika Lake Manyara Lake Eyasi Lake Kitangiri Eyasi-Wembere Basin Rukwa basin - Seismic, Gravity,Magnetic and 2 deep wells L. Tanganyika- Seismic, Magnetic Malagarasi Basin Malagarasi Basin- Magnetic Rukwa Basin South SELOUS Block Magnetic Lake Rukwa DRC ZAMBIA Ruhuhu Basin South Selous Basin Wembere/Eyasi Basin- Gravity and Magnetic Kilosa Basin - Magnetic 34 Lake Tanganyika Tullow Oil Application Licence Ruhuhu Basin - Magnetic 34

35 TANESCO PROJECTS Tanzania has extensive unexploited hydroelectric resources. These include identified sites that have been studied to feasibility level namely Ruhudji (358MW), Rumakali (222MW) and Songwe River (>300 MW) which forms part of the physical boundary between the United Republic of Tanzania and the Republic of Malawi. The total unexploited hydroelectric power potential is estimated to be at least 4500 MW. 35

36 TANESCO PROJECTS Rehabilitation and expansion projects request a total of US Dollar 130,228,630 for 6 regions of Mbeya, Kagera, Singida, Manyara, Ruvuma, and Rukwa. SCOPE OF WORK REHABILITATI ON EXPANSION TOTAL [USD] [USD] [USD] SUBSTATIONS 1,310,806 7,325,201 8,636,007 33kV LINES 18,772,801 41,735,552 60,508,353 11kV LINES 2,874,890 6,715,437 9,590,327 LT LINES 21,683,954 29,809,990 51,493,944 TOTAL 44,642,451 85,586, ,228,630 36

37 Infrastructure 37 Power Telecommunication Roads Seaports Airports Railways Bridges BOT Schemes Tanzania has developed policies and enabling legislations for private sector to engage in building and operating Tanzania roads under BOT, BOO or BOOT systems. Power generation Tanzania has put an enabling legislation and Institutional framework in place to allow the private sector to engage in the Electricity Generation and Distribution sector. Opportunities in generation of energy from hydro, Gas, Wind etc

38 P O R T Tanzania has 3 major ports of Dar es salaam, Mtwara and Tanga. Tanzanian ports are the natural hubs bordering 6 landlocked countries of Uganda, Burundi, Rwanda, DRC, Malawi and Zambia. In the islands, Tanzania is also bordered by Seychelles, Comoro and Mauritius. The aim is to improve the cargo volume handling capacities in Tanzania s lake and sea ports by This will be achieved through: - Enhancing the use of improved technology in water transport facilities - Private investment in Marine Transport Services - Synchronizing the port operation system with other cargo handling institutions 38

39 39 SOME OF PORT PROJECTS FROM T.P.A

40 Some port projects available for investment Strengthening and Deepening of Berths 1-7, Dar es Salaam Port USD 510 mil Development of Mbegani Port at Bagamoyo (estimated cost is USD 1 bil) Development of Mwambani Port in Tanga (estimated cost is USD 700 m) Kisarawe Cargo Freight Station (KCFS) (estimated cost is USD 280 m) Expansion and Modernization of Mtwara Port (estimated cost is USD 184.1m) Dar Harbour Water Front Development (estimated cost USD mil) Contact: Tanzania Ports Authority 40

41 R A I L W A Y S The Government plans to: - Rehabilitate existing railway lines - Upgrade & construct strategic line - Construct new railway lines (Isaka, Rwanda and Burundi) 41

42 A I R P O R T S Development of Airports and Air Transport system 42

43 43 SOME OF AIRPORT PROJECTS FROM T.A.A

44 1. LOCATION: JULIUS NYERERE INTERNATIONAL AIRPORT (JNIA) IN DAR ES SALAAM REGION 2. Implementing Authority: Tanzania Airports Authority (TAA) 3. Project Name(s): Passenger Traffic (2009): 1.5million per year Rehabilitation and Extension of Existing Terminal II Building as a short term measure and Construction of a complete new Terminal III Building to cater as medium and long terms measure Project Benefits: Improved efficiency and comfort to passengers upon Rehabilitation of Buildings and facilities Improved capacity of the airport to handle more aircrafts upon increase of terminal and apron size Improved security upon implementation of security programs 6. Projects Cost Estimates: Rehab Existing Terminal II: Approx US$: 20 million New Terminal III: Approx US$ 350 million 7. Project Status: Feasibility study and detailed design needs to be done for most of the items. Only basic concepts available 44

45 1. LOCATION: ARUSHA AIRPORT IN ARUSHA REGION 2. Implementing Authority: Tanzania Airports Authority 3. Project Name: Passenger Traffic (2009): 122,621 per year : Rehabilitation and construction of pavements [runway, apron, taxiways and access road]; construction of terminal building and security improvements 5. Project Benefits: Improved safety to aircrafts on pavement rehabilitation and purchase of fire tenders Improved security upon implementation of security programs Improved efficiency and comfort upon Rehabilitation of Buildings and facilities Improved tourist destination 6. Projects Cost estimates: US$: 41.3 million Project Status: Design and Study done by an English Firm concluded in July 2009 under the World Bank Funding

46 1. LOCATION: MWANZA AIRPORT IN MWANZA REGION 2. Implementing Authority: Tanzania Airports Authority 3. Project Name: Passenger Traffic (2009): 224,207 per year Construction of Airport pavements on access roads, passenger apron, cargo apron, taxiways Construction of new PAX. Terminal and Cargo Building 5. Project Benefits: Improved efficiency and comfort to passengers upon Rehabilitation of Buildings and facilities Improved capacity of the airport to handle more aircrafts upon increase of terminal and apron size Improved fish storage and export 6. Projects Cost Estimated at US$: 60 million 7. Project Status: Review Designs for aprons, taxiways, turning bays and runway extension Review Designs for terminal buildings and cargo building Review designs for car parks and access roads 46

47 47 SOME OF THE PROJECTS FROM EPZA

48 EPZA PROJECTS 1. Establishment of EPZ and SEZ Industrial Parks 2. Establishment of Tourism Park 3. Establishment of Free Port Facilities 4. Establishment of Free Trade Zone 5. Science and technological Parks 6. International Business Centre 7. Construction of Industrial Sheds at the BWM-SEZ 48

49 E P Z PROJECTS 49 Contact: The Director General Export Processing Zones Authority P. O. Box 12112, Dar es Salaam, Tanzania Tel: Fax: , E mail: info@epza.co.tz

50 Extractive Industries GEOLOGICAL ENVIRONMENT-TANZANIA 50

51 Extractive Industries Location of Major Coal and Iron Ore Reserves TANZANIA Kiwira Coal Deposits Liganga Iron Ore, Titanium and Vanadium Deposits Mtwara Corridor Mchuchuma- Katawake Coal Deposits 51 Sources: Tanzania Investment Centre, Tanzania National Development Corporation. Investment opportunities in Liganga and Mchuchuma are mainly in the establishment of Steel processing plants

52 Oil and Gas Opportunities in Tanzania Hydrocarbon exploration in Tanzania, a number of available blocks in sedimentary basin both onshore and offshore Currently, open acreage include the Rufiji basin, inland rift basins of L. Rukwa, L. Tanganyika, L. Nyasa, and the Ruhuhu Karoo Basin. 52 Contact: Managing Director, Tanzania Petroleum Development Corporation P.O. Box 2774,Tel: , Fax: tpdcmd@tpdc-tz.co 52

53 Down Stream Investment Opportunities In the Gas subsector Fertilizers and Petrochemicals production Compressed Natural Gas (CNG) for vehicles Piped Natural Gas (PNG)/CNG for households (Millions of forest hectors are burnt every year) Liquefied Petroleum Gas (LPG) Production 53

54 Tourism Air charter City Tourism Beach Tourism Conference Tourism Sports/Golf Tourism Medical Tourism Historical Tourism Hotel development 54

55 ZANZIBAR INVESTMENT OPPORTUNITIES Fisheries and Marine products Deep Sea Fishing Processing & Canning Fishing Landing site facilities Seaweed Processing Agriculture/Agro-related industries Essential Oils Horticulture Spices Export of fresh fruit Livestock Dairy and Poultry farming, processing Construction and management of Modern Slaughterhouse 55

56 ZANZIBAR INVESTMENT OPPORTUNITIES Tourism and related services Up market/high class chain hotels Convention Centres Recreational and Amusement parks Services Health care centres Business and Financial services Information and Communication Technology (ICT) 56

57 C O N C L U S I O N We invite JAPANESE investors to Tanzania to trade and invest in different sectors especially Energy, Infrastructure and Extractive Industries 57

58 58 COME & GROW WITH US

59 Thank You For Your Kind Attention 59